a) b) ABC Company designs a new four slots toaster that can be adjusted to the...

 

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a) b) ABC Company designs a new four slots toaster that can be adjusted to the various thickness of bread and bagel. The pricing plan for the new toaster: Target price $ 97.50 The company requires new products be priced such that 30% of the price is profit. Required: Compute the amount of desired profit per unit of new toaster. Compute the target cost per unit of new toaster. (1 Mark) (1 Mark) ABC Company manufactures three types of filing boxes. Each type requires the use of a special machine that has a limited capacity each year. Information on the three types of storage units is as follows: Special machine capacity Selling price Variable cost Machine hours required $ $ Basic 18,000 Standard 10.80 $ 7.20 $ 0.12 36.00 24.00 0.60 The company believes that it can sell as many units as it can produce for each type of the products. Required: c) Compute the number of each type of products to be produced to MAXIMIZE the company's contribution margin. (Hint: the type of product that has the highest contribuiton margin per machine hour should be produced first, followed by the next highest in order, and then the least contribution margin. The number of units that can be produced is constrained by the special machine capacity.) (4 Marks) Basic Standard a) b) ABC Company designs a new four slots toaster that can be adjusted to the various thickness of bread and bagel. The pricing plan for the new toaster: Target price $ 97.50 The company requires new products be priced such that 30% of the price is profit. Required: Compute the amount of desired profit per unit of new toaster. Compute the target cost per unit of new toaster. (1 Mark) (1 Mark) ABC Company manufactures three types of filing boxes. Each type requires the use of a special machine that has a limited capacity each year. Information on the three types of storage units is as follows: Special machine capacity Selling price Variable cost Machine hours required $ $ Basic 18,000 Standard 10.80 $ 7.20 $ 0.12 36.00 24.00 0.60 The company believes that it can sell as many units as it can produce for each type of the products. Required: c) Compute the number of each type of products to be produced to MAXIMIZE the company's contribution margin. (Hint: the type of product that has the highest contribuiton margin per machine hour should be produced first, followed by the next highest in order, and then the least contribution margin. The number of units that can be produced is constrained by the special machine capacity.) (4 Marks) Basic Standard

Answer rating: 100% (QA)

a Desired profit per unit of new toaster Desired profit 30 of target price Desired profit 03 9750 29... View the full answer